INVESTOR RELATIONS
HIGHLIGHTS
CALVIN KLEIN JEANS & CALVIN KLEIN UNDERWEAR
FALL 2014 SEASON UPDATE THROUGH NOVEMBER 2014
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Fall 2014 Calvin Klein Jeans business is
experiencing positive reactions from its initial
strategic initiatives, driven by new elevated
product, enhanced retail presentation and 360º
marketing engagement
Product focus includes elevation of denim
washes and fabrics, as well as improved
labeling and trims; we are also improving our
positioning on the floor with the appropriate
brand adjacencies
THE RETAIL PRESENTATION OF CALVIN KLEIN
JEANS PRODUCT HAS SEEN:
•The first significant wave of shop roll-outs in North America and Europe during 3Q14
•New store openings in Europe, Asia and
Latin America leveraging newly designed
store concept
•Focus on refreshing / renovating stores across the globe with the latest fixturing and visual package
•Denim fits and features clearly articulated
on signage and fixtures
CONSUMER ENGAGEMENT DRIVEN BY 360º
MARKETING AND COMMUNICATIONS PROGRAM:
•
Calvin Klein Jeans’ Fall 2014 marketing campaign, show yours. #mycalvins is everaging the success of Calvin Klein
Underwear’s #mycalvins campaign with
an emphasis on digital engagement along with point of sale (POS) and windows marketing
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•Marketing events around the world
designed to engage consumers and drive
brand relevance, with a particular focus
on events featuring top entertainers and musicians
•Recent high-profile events in Mexico City and Sao Paulo generated significant brand awareness, fan interactions, and, most
importantly, helped drive traffic in target
markets
Calvin Klein’s peers
•AURs are showing 10% to 15% growth
to last year, with gains in both men’s
and women’s
•Men’s product is further along than
women’s; women’s also experienced a
carryover of some Spring clearance into
the Fall 2014 season
KEY HIGHLIGHTS FOR THE FALL 2014 SEASONTO-DATE (THROUGH NOVEMBER) INCLUDE:
NORTH AMERICA
•Despite nearly a one-month delay, we
successfully opened approximately 115
shops in men’s and 75 shops in women’s
during 3Q14, most of which were in Macy’s locations
•Openings occurred in key Macy’s markets including Herald Square (full shop
renovation will occur in 2015;
improvements in 2014 included updated
shop fixtures), Union Square, Dadeland,
Aventura, Menlo Park and Flushing
•New shops experiencing 40% sales
increase over last year
•Opening price points for jeans were
raised to $69.50 from $49.50, reflecting
the elevated quality and design, and to more closely align pricing with
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MACY’S HERALD SQUARE STORE WINDOWS
MACY’S UNION SQUARE
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MACY’S UNION SQUARE
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MACY’S UNION SQUARE
KEY HIGHLIGHTS FOR EUROPE THROUGH NOVEMBER 2014 INCLUDE:
•Despite a similar month delay, we successfully opened 80 shops in Europe, including Harrod’s, House of Fraser and Selfridges in London; select Galeries Lafayette and Printemps stores across France; selected top doors in Peek & Cloppenburg, Germany; NK in Sweden and Coin in Milan
•
We renovated or opened stores during the quarter, including full price stores in Barcelona
and Warsaw, and an outlet store in Valmontone (Italy)
•New shops are performing well
•Since the Warnaco acquisition, we closed nearly 30 stores as of the end of 3Q14
SHOP IN SHOP: PRINTEMPS; LYON, FRANCE
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WARSAW STORE
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ULLEMISTE (ESTONIA) STORE
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KEY HIGHLIGHTS FOR ASIA AND LATIN AMERICA
THROUGH NOVEMBER 2014 INCLUDE:
•Opened 24 new Calvin Klein Jeans
stores in Asia during the first three quarters
of 2014; key cities include Chengdu,
Shanghai and Beijing
•Opened travel retail shops in Asia,
which we view as a high growth channel, as the brand is highly underpenetrated in this channel
•New stores have opened under our
new design concept in
Fortaleza Rio Mar and Tacaruna Recife (both in Brazil)
EVER RICH KINMEN MALL (TAIWAN)
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KUALA LUMPUR INTERNATIONAL AIRPORT STORE (TRAVEL RETAIL)
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TACARUNA RECIFE, BRAZIL
FORTALEZA RIO MAR, BRAZIL
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•New basic product delivered into stores
in August 2014
- New products feature enhanced quality
(fabric, waist bands), styling (e.g., logos
on t-shirts) and packaging
•Modern Cotton logo initiative leverages
the best aspects of Calvin Klein Underwear
product for men and translates it for women
•Calvin Klein Underwear #mycalvins
campaign has been very successful in
generating interest in the brand and its
products, with a sharp increase in our
followers globally (e.g., Facebook,
Instagram, Twitter, Tumblr and Renren
in China) and most importantly an
increase in engagement and ultimate
transactions of underwear globally
•360º marketing efforts continue to drive
consumer awareness and relevance, as
marketing has always been at the core of
Calvin Klein Underwear
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KEY HIGHLIGHTS FOR NORTH AMERICA THROUGH
NOVEMBER 2014 INCLUDE:
•Delivered new basic product along with more
elevated packaging for men’s underwear multi-packs
•Increased ticket prices on men’s underwear multi-packs with no impact to sell throughs,
while experiencing improved AURs
season to date
•Upgraded and installed new shops in key markets such as New York (Macy’s Herald
Square, Lord & Taylor Fifth Avenue),
MACY’S HERALD SQUARE STORE WINDOWS
Florida (Macy’s Aventura) and California (Beverly Center and South Coast Plaza)
•Calvin Klein Underwear market share grew
3% in men’s and 2% in women’s during
3Q at Macy’s
•The Calvin Klein Underwear shop at
Macy’s Herald Square, which
was recently redesigned, currently houses
the largest Calvin Klein Underwear presentation
at wholesale in the world, at approximately
2,500 square feet
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MACY’S HERALD SQUARE STORE WINDOWS
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MACY’S HERALD SQUARE
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MACY’S AVENTURA
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MACY’S AVENTURA
KEY HIGHLIGHTS FOR EUROPE AND ASIA THROUGH NOVEMBER 2014 INCLUDE:
•Men’s continues to outperform, as the brand resonates strongly with the Asian
and European consumer
•Women’s performance driven by the elevated fashion component added to the business
•The Perfectly Fit Collection for women is ranked as the top #1 or #2 performing collection
in all key regions in Asia, with customers responding to upgraded technology and
softer fabrics
•Men’s continues to be a strong performer with Calvin Klein Black Label and updated
prints driving the business
VALMONTONE (ITALY) OUTLET STORE
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VALMONTONE (ITALY) OUTLET STORE
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LEE GARDEN (HONG KONG) DUAL GENDER STORE
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CALVIN KLEIN JEANS & CALVIN KLEIN UNDERWEAR
FALL 2014 SEASON UPDATE THROUGH NOVEMBER 2014
INVESTOR RELATIONS
HIGHLIGHTS